Shanghai Free-Trade Dreams Set to Be Dashed

Little is known about the new free-trade zone that is being planned in Shanghai. But that hasn't stopped Chinese investors from speculating wildly on who might benefit.

Since a vague announcement on Aug. 23 that China's top governing body had approved the 29-square kilometer zone in Shanghai, shares in Shanghai International Port Co. have risen by more than 130%. Tianjin Port Holding Co. is up 30% over the same period on speculation that other coastal cities will get similar areas. Shanghai Pudong Development Bank has...